Carysil Limited ($524091)

Ladies and gentlemen, good day, and welcome to Carysil Limited Q4 and FY '26 Earnings Conference Call hosted by Go India Advisors. This conference call may contain forward-looking statements about the company, which are based on the beliefs, opinion and expectation of the company as on date of this call. These statements are not the guarantee of future performance and involve risks and uncertainties that are difficult to predict. Please note that this conference is being recorded. I now hand the conference over to Mr. Chirag Parekh. Thank you, and over to you, sir.

Good evening, ladies and gentlemen. Thank you for joining us for the Carysil Limited Quarter 4 FY '26 Earnings Conference Call. I trust you have an opportunity to review our financial results and investor presentation, both of which are available in the company's website and stock exchanges. Joining me on this call is Mr. Anand Sharma, Executive Director and Group CFO, along with GIA, our Investor Relations advisers. FY '26 marks an important inflection point in company's evolution as the company continues its transition from a quartzing manufacturer as a one-stop integrated kitchen and a bathroom solution company expanding its global presence. And Carysil started its journey decades ago, it began with a simple vision to build a world-class Indian manufacturing company capable of competing with the best globally -- from humble beginnings with limited resources and immense conviction, the company has built on the pillars of hard work, integrity, resilience and long-term thinking. The country established a presence about 50 countries, a diversified product portfolio, respecting manufacturing capabilities and long-standing customer relations across key markets. This foundation built over decades of disciplined execution and focusing on delivery quality products embedded with German DNA. I'm pleased to share that despite the heavy headwinds marked by geopolitical certainties, trade volatility, inflationary pressures, tariff-related disrupted, Caracsel delivered one of its strongest operating performance to date during FY '26, backed by total income growth of 14% EBITDA growth of 31% and PAT growth of 54%, while PAT margins after MI improved by approximately 274 basis points year-on-year. India and global manufacturing opportunity. India today stands at a pivotal stage of economic evolution supported by its ongoing policy reforms, improving infrastructure, making India focus. The company has emerged as a credible global manufacturing export hub. Ping relations with U.K., U.S., Europe, Australia, creating a very meaningful long-term opportunities for Indian exporters. India entered FDA deal with major economies like U.K., Europe, Australia, Mean process of running estate with USA and also entered Sapa in Middle Eastern countries. India is poised to change the world order provide credible option of global chain supply. Operational stability and margin outlook. Despite industry-wide inflationary pressure across gas, electricity and raw material during FY '26, Caracal maintained stability and interrupted operations across all facilities without any major production disruptions. Stable labor availability supported by deep employee engagement continue to remain a key operational strength. Teresa different positioning and customer relationship effective pass-through of cost resulting in healthy margin expansion during the year. Increasing automation, operating leverage and growing contribution from higher-value categories will structure support profitability. Additionally, the growing business in marquee global customers like Lowe's, IKEA and our new entrant Home Depot and other leading internet retail partners expected to improve scale efficiencies and overall business quality over the long term. Business highlights, what Sing business. The Patanase business continued to deliver a healthy performance in FY '26, supported by resilient export demand and improving domestic traction with volumes growing by approximately 21%. And to cater to rising demand, cars continue investments in more development, automation, product renovation and capacity expansion with previously announced incremental what capacity expected to become operational in quarter 1 FY '27. of another 250,000 units. While the company remains focused on porting the continues to gradually expand its presence across other kitchen adjacent categories. Stainless steel in business continues to emerge as a key growth driver during the year with value growing by approximately 20%, supported by strong OEM demand and exports. Also augments traditionally stable manufacturing capacity of 70,000 units per annum from effective today, increasing the total output from capacity to 180,000 to 250,000 units per year. To support long-term growth, the company has also acquired adjacent land for the future expansion and diversification to meet the demands of the big OEM players like Cola, flag, Go, et cetera. Belting appliances business gained encouraging traction by premising trends, the import substitution opportunities rising modular, kitchen penetration and growing OEM interest. Also, the company has been able to have a breakthrough on the electronic modern trade retail chains. Under Phase I Carel has commenced a pilot manufacturing of goods and hobs. When Phase 2 will expand into hub then on food was disposal and other building solutions. The company will be investing in very sophisticated and highly advanced manufacturing technologies, glass cutting, forming, color coating -- it is also plans to witness a growing interest of OEM, large global OBM players increasing domestic manufacturing opportunities arising out of BIS related regulation in India. Faucet business. The fossil business is also shaping as a quite important growth category. Like I said last time, every kitchen thing needs a faucet. Catasys has commenced manufacturing of stainless steel kitchen projects as well as brass faucets, along with the powder coating color solution. And the last launch was our water RO solution where you can have a drinking water where my Mantra was Hari, Bharti, Karastan inch. [Foreign Language] We have that dream. The portfolio is aligned and you all export standards across Europe, U.S. and other countries. We're already getting some encouraging responses from our global customers. On the export front, demand visibility improved steadily during FY '26 across key international markets following positive trade developments globally as Europe, Middle East, et cetera, important growth regions of the company. Looking ahead, we are focusing on the market opportunities like Far East to boost our broader trend to deepen its global footprint to diversify our export base. We also see a large opportunity in Germany and neighborhood countries in Europe. And we feel that we have not penetrated -- we have still a lot to penetrate hence. We have hired a new business development manager based out of Germany. His job is to develop new customers in Germany to start with. The Middle East business continues to perform in spite of the geo vertical situations quite well. We're also expanding our branded stores across the Gulf region. We have a second store opening in UA coming soon very shortly. The company is also selling its presence in Europe, South asticia, Australia and other key Asia Pacific markets and other emerging markets through distributor and strategic partnerships. Increasing traction from large-format retailer institutional customers further reinforces management confidence on the export opportunity. The company's international subsidiaries witnessed to do healthy momentum in FY '26. Acquisition USA achieved an operational breakeven during the year by improving scale and stronger customer struction while improving strong margins. DC of our UA based company continued its performance by healthy demand expanding present cost Middle East region. India business and online expansion. The India business delivered healthy growth, supported by improving retail demand, OEM traction, new product launches, deeper market penetration and distributor expansion by broadening our sales team. Cassel continues to strengthen its domestic franchisee to investment in dealer expansion experience center, bank stores, modern trade, digital firing and consuming instates with model. franchisee or Fetisoperator. The company also launched dedicated B2B vertical, which was completely absent, which is Goto target the top architects and builder institutions in India to scale up our sales in the B2B distributional market. Now the most increasing development is to see the strong traction in online business, which contributed approximately INR 5 crores during FY '26 and is expected to scale meaningfully as consumer preference interest toward digital home. The company has entered digital e-com to launch Caracal led brand called Carissa for D2C model. With an expanding portfolio of and other kitchen categories. Cares witnessing crossing opportunities across India, distribution network is expected to strengthen customer invent improve wallet share and support long-term scale growth. One point I forgot to mention that on the company online, we have been able to crack upon the major alpha distribution with the largest e-com -- largest e-com marketplace in India. And we see the e-com sales running into 2x, 3x for the current year. Caracal 2.0, building the future INOVAXpo26. FY '26, beginning Caretex, the clear strategic vision of making the largest kitchen hub in India. A dream of Make in India. Carysil building capabilities across things, appliances, facets and smart kitchen solutions with automation, quality, design and brand building. company also sees a strengthening as international business in key markets. The response to newly launched product in OVX6 and recent customer interact has been highly encouraging and reinforces management confidence in the strategy going. The company continues to invest across manufacturing, automation, development, in AI, digital capabilities distribution expand the international market guided by a long-term aspiration of building a $100 billion kitchen business. Tarasi believe foundation with this vision is steadily taking shape for disciplined execution and sustained investment across business. Now with multiple growth engines, now expanding simultaneous cross exports, India, distribution, OEM partnership alliances, new products like faucets, new channels, new digital channels. Tariffs believes they are entered. Clearly, the next phase of structurally stronger and more diversified growth. FY '27 is expected to be a very important and a crucial year of execution, capacity expansion and capability building. Now I would like to hand over the call to Mr. Anand Sharma, Executive Director and Group CFO, will take you through the financial performance in data retail. Thank you.

Good evening, everyone. Let me take you through the company's consolidated financial performance for the quarter and full year ended FY '26. Quarter 4 FY '26 performance. Consolidated total income for quarter 4 FY '26 stood at INR 237 crore as compared to INR 205 crores in Q4 FY '25, registering growth the quarter stood at INR 48 crores against INR 36 crores in corresponding last year quarter, reflecting growth of 33%. EBITDA margin for quarter 4 FY '26 stood at 20.3%, up by 277 basis points. . Profit after tax and minority interest for the quarter stood at INR 27 crores as compared to INR 19 crores of Q4 FY '25. During the quarter, Quasim sales volume stood at 195.5000 stainless steel volume stood at 44.60 while kitchen appliances and other volumes stood at 8.50. Post recorded sales volume of 10.20 units. FY '26 performance in FY '26, consolidated total income stood at INR 932 crores as against INR 820 crores in FY '25. Delivering growth of 14%. EBITDA for FY '26 stood at INR 185 crores as compared to INR 142 crores in FY '25, reflecting strong growth of 13%, while EBITDA margin improved to 19.9% as compared to 17.3% previous year. Profit after tax and Marty interest for FY '26 stood by INR 98 crore as against INR 64 crores in FY '25 -- healthy growth of 53%. The improvement in profitability was driven by healthy operating leverage, improved product mix, higher contribution from value-added products and continued focus on operational efficiency across businesses. From the balance sheet perspective, gross debt stood at INR 270 crores as on 31 March 2026, while cash and bank balance stood at INR 69 crores. During FY '26, company incurred total CapEx of INR 68 crores towards plantain, Cast enhancement, automation initiative, more development and other infrastructure-led investment to support future growth. With this, we conclude the financial performance update. We will now open the floor for question and answer. Over to you, operator.

[Operator Instructions] The first question come from the line of Naman Parmar from Devesh Investments.

Yes. Thank you so much for the opportunity and congratulations on great side of number. So firstly, I wanted to understand on the U.K. market specifically. So how has been the demand scenario on that market side? And if you can break up the capacity on the U.K. market because in U.K. market also if you are manufacturing then you also would be selling that to the U.S. or the other region, right? So how much of the total capacity situated in the U.K. market?

Okay. So I can answer then for the question. I'll answer the second question first. So the U.K. market, the manufacturing is completely dedicated for the U.K. market only. That's one. Number 2 is -- you see the U.K., there is no doubt U.K. market is tough right now, but we've been doing, I think, quite well. Our team is on it. What we had a visit last month, we know. And I think what is interesting part is while U.K. is facing challenges, that the whatever the reserve, what we are giving right now is at the worst crisis the U.K. can pass, it seems very clearly that U.K. is bottomed out. That's point number one. We are so resilient we do our low-cost model. Most of the products are being exported from India to U.K. that we feel that the opportunities are very large. So for example, we have developed about 15 new customers in the last 3 quarters, which are big changes in the U.K. market where Europe is not able to sustain at a low price competition. So it is a the things are tough, challenging, but the market, we are increasing our market share, and that's how we are sustaining in U.K. at this point of time.

Okay. And what is the capacity in the U.K. market?

Capacity in terms?

For the cost in and the stainless...

No, we are not manufacturing anything over there. We are only manufacturing solid services, yes. We're not doing anything...

And lastly, on the Indian market, like if we see like there has been a very good penetration from 16% of the revenue. It has come later higher to 20% of even -- so like you mentioned about the e-commerce deal also you are correct. So how has been the distribution network has been getting spent over? And what's your outlook for the Indian market going forward? .

The Indian market is -- I just touch you a broader picture. So I think it's very clear we want to touch our INR 500 crores sale within 5 years in India. As India, I think we are as a brand and as our product portfolio, I think we are performing. I think we have actually not shipped our gears in India. This is the first time we are shifting our deals in India. So I think on a longer run, if you are to achieve a turnover of INR 500 crores within the next less than 5 years, we will have to grow at a rate of 30%, 40% year-on-year. And the company is with all the expansion and what the new product launches with the new team, we will -- will be added will be added to see that we are a norm able to take away to have a substantial market share in India.

Our next question comes from the line of Garik Bafna from Mona Metro Capital Limited.

Congratulations, sir, on a good set of numbers. Sir, my first question is on the ForEx side. What kind of ForEx gains have been recorded in the quarter? And how much of it has been impacted in our revenue and margins?

So Vivek, we have INR 2.5 crore gain in the quarter 4 on the ForEx side. And what are the next question, sir? .

How has it impacted the margin? How has that impacted our margins and revenue? .

So margin could be like -- it's like less than 1%, 0.5%.

And on the top line plan.

Top line impact is this only because whatever gain coming that is reflected in the exchange gain, we are not changing the -- whatever billing happened, that is all the same price, which is on the data of the sales. .

What is asking what the incremental you got because of...

INR 2.5 crore overall revenue.

So I think I can answer that. So I think the rupee has depreciated roughly about 5% to 6%. I think that will be the sales gain what we have got.

Okay, sir. Got it. And sir, now second thing is on the court sinks capacity, which is expected to come in this year. So by when should we expect this to come? And how much utilization do we see that we can achieve over here?

We said it's going to be comments so we already started the ground digging and all that. So we are looking at to finish it by quarter 1 FY '27 --. quarter 1, FY' 28 -- so a year -- sorry quarter 4 FY '27.

And sir, the recent capacity being added on the stainless side, and you can see that commissioning has started today. So sir, once this capacity expansion. So what would be driven over year as to have we added new clients? Or have we increased our wallet share from existing clients? .

Both. We have increased our wallet share -- we have also got some new export opportunities. And third, we have already mentioned like large players like Graco and seals tide with us with the leader, we are already falling back on them. capacity. So we already are having backlogs. So this increase in capacity would be mature within the next 90 days. So we will already start graduate, it will start, but it will be more mature in the next 90 days.

Okay, sir. Got it. And sir, last thing is on your guidance for revenue. Can we achieve more than 20% revenue growth in the coming years with new capacities on board very aggressive domestic expansion.

It's a tough one, is for me to answer this. We are at, we are added our growth guidance of between 15%, 20% right now remains in place with a 18% to 20% margin guidance. The geopolicdversities are very, very strong. I cannot cannot even say the future what it is. But we stick to our guidance what we have mentioned before.

Okay. Sir, 1 last thing is on the cash issues, which were there globally during the quarter. So any -- so what is your view over it? And also, sir, did you face any freight disruption in terms of exporting the products to U.S., U.K. or the UAE, have we seen any increase in time line of reaching the products for the final destination?

Yes, yes. So there is -- so I think there's no question to answer a question to there is the 100%. I think there is a lot of disruptions on freight, but team is managing well. Somewhere we have delays on getting the containers, some were delays of getting the ships reaching the customer. So that is there. I think that's going to be -- that's going to be there, but that's something which is out of control on everybody's hands but we are doing our best to manage it. And your first question was on the cap portals, I didn't understand.

CapEx, you're in what...

We have a cap --

Maybe can you answer the question...

Sir, my first question was on the gas availability.

So currently, we are getting 100% supply. So it was for only a few weeks, it was not available. Now it's 100% operation. .

Our next question comes from the line of Mo Pinafore investment as [indiscernible]

Congratulation, sir, on a great set of number. My question is regarding the 5-year India revenue target of INR 500 crores so this year, you did like INR 175 crores, so that means roughly 25% CAGR for the next 5 years. Given the premium positioning of Carin active brand investments. Don't you think this target appears quite conservative?

There it in terms [Foreign Language] go because we realize we are realistic. A lot of -- we all know a lot of the adverse situation going around. So we are -- and it is conservative, yes, but it is really a quite good growth and even to do this growth, it is going to be challenging. It's not going to be a with this because we are at a -- what we call a launch phase to scale up our India. So I think once 1 or 2 years, if you're able to achieve this, and I think the moment going to pick up.

Okay, sir. Sir, also you mentioned that the U.K. market has bottomed out about the Europe market, Sorothas been impacted by weak housing demand, inflation and higher energy costs and a softer consumer sentiment over the past few years. Given Europe is a key market for Caris, how have the demand trends evolved over the last few quarters and seeing kind of prices. Are you seeing any recovery in order inflows or customer confidence? .

Good question. So first of all, I want to say Europe is comprises of more than 20 countries. We are spread across 12 countries across Europe. Second, I've always been saying that our -- most of our European competition because has gone very big because of this. So most of the market share we are taking off that with the large kitchen manufacturers and large retail scores. Point number 3 is that we have been suddenly seeing a good traction of order coming from Europe. Now whether it is I'm sure it is to do more with the -- taking on the market share of our competition. But we slowly feel that things are improving in Europe as far as the kitchens are concerned. One thing Europe does not compromise is this kitchen. That is every 4 to 5 years, they change the kitchen in respective audit is. So that's the advantage you get when you are positioning at a premium segment of the market.

[Operator Instructions] Our next question comes from the line of Sunil Jain from Nirmal Bang Securities. .

Congratulations on good numbers. Sir, my question related to India business. The Indian business margins are similar to the company level margin or they are at a development stage?

I think as far as the not I think, I think it is. I think our gross margins are validation in a few of the product categories even better than the exports and there is thanks to the new value-added products that we have introduced. So on the net profit side, because of the higher marketing costs, we had a launch phase, and we are recruiting new teams on a net level, it is lower than export. But moving forward, as we are able to get scale, the margin improvement is going to happen.

So any target for ad spend or sales development expense?

Yes. So we have a sale yes. So total that we have markets in delivered, we have benchmarked at about 10% to 10% of our sales, and we are sticking to that. If any of the 1 or 2 quarters on exhibitions happen, that is like a onetime cost minus that web benchmarking in 10%.

Our next question comes from the line of Pragya from OMI Securities.

Congratulations for a good set of ensurity. Sir, my question is I really want to understand the majority of our revenue is followed from export market, what are risk mitigation techniques to be used that are epost as good numbers? The fourth question is please.

What is -- what we are doing to get the good number. Good, right good numbers here is a problem. Yes, I think great trust relationships what our company has built over this period of time, and that is what on the results. That's number one. Second is we have been very persistent on getting the new customers like Lowe's, Home Depot, just giving you an example that I've been going there in the United States and playing golf with them for the last 15 years right? Like I will come back, an myself and under the sun. So the there is no pain, no gain. You've got to burn some tire. I think is a persistency what our company has done to gain these new customers. Third is the exposure and the visibility of our company as we are able to reach scale and be able to penetrate to large and well-known OEM customers. The more the visibility of our company as a brand is coming, and that is adding a lot of trust. And fourth and the last thing is that our we are really ahead of the curve in terms of technology, quality and in terms of price. So we are probably the lowest cost producer in premium category of branded sings and now also in the stainless steel. I think an that I think we are earning that a very strong reputation on it. And I think based on these 4 pillars, I think we see that the next 5-year ride is going to be quite good.

And we are not facing any issues in Q1? Like any trade disruptions or delays in shipping the product? .

It is No, it is. It is. The disruptions are happening. -- delays are happening with the country. That's how it's not with us. It's with every industry. So I think for some short time, I think we got a deal. Customers understand so they we have to deal with it.

Okay. Sir, second question is, currently, if I'm not wrong, our appliances capacity is around 50,000 is wrong. And and we are increasing it by 50,000 by FY '28, right? So do you see it ramping up in phases, like will any capacity come in FY '27 or will entire capacity be operationally in FY '28. And what would be the utilization in the first year?

Yes. So we are actually directing a brand-new plan for appliances of this. We are in touch with some very large international companies for a collaboration on this. And I think soon we'll be closing on that. And based on that, a complete new assembly line will be in. The 1 what we have of 50,000 boots is more of a pilot production what we are doing. So to answer your question, the whole capacity increase of 100,000 units, it is going to come. additional 100,000 units to days 50 plus 50, so 100,000 unit total -- so it will be 50-plus will be 50,000 to start with as Phase 1. That's going to come in FY '28.

Our next question comes from the line of Anupam from Ratnatraya Capital.

Sir, how much of CapEx is required for this 500 units of appliances that we are talking about? Or how will you manage this? .

So overall, the overall capacity, what we are building the infra, we are building for about 200,000 units. -- cross sale is 50,000 units. The total infra cost right now, it is coming at about -- about INR 30 crores to INR 40 crores which is building the assembly line, yes.

Okay. On the warts capacity, sir, you said it will be coming on Q1 FY '28. I understand. So....

Sorry. It was no, no, sorry. I would like to -- finally, I did clarify, it is quarter 4 FY '27.

Okay. So our capacity is going from where to where right now?

Yes. So we are increasing to 250,000 units, will be 1.25.

Okay. And we do expect this capacity to get utilized within 2 years? Or how do we look at it? .

I think right now, I think looking at what the business traction is, let us see. Are we good, but I think it will -- let's see, probably in a year's time, maximum. We if things go really well, I think we can really do it in less than 6 months.

I'm sorry to interrupt you, but you may please -- you may please rejoin the queue for more questions. [Operator Instructions] Our next question comes from the line of Sagar Jethwani from Phillip Capital.

Yes. Congratulations on a good Q4. Just 3 questions, actually. What led to 50% growth in volumes in stainless steel on a Y-o-Y basis and even there is a good amount of jump in sequential volumes. So that's my first question. Secondly, can our margins improve more than 20% if we grow our revenues by, say, 18% to 20%, so can we achieve some good amount of operating leverage at this rate of revenue growth going ahead? That is second. Third, would you be able to provide a margin for kitchen appliances and faucet business? .

Sure. So I'll take your question. First is the scale in the sales business is launching of high products and strong demand for that in the Indian market. And secondly, you started the OEM supplies to brands like as and color. So I think that's where we got the scale and that's why we are expanding our capacity. Point number 2 is, yes, I think it is going to be a volume-led growth and margin expansion potential is there. At the same time, we need to see there a lot of new vertical issues going on, but our margin guidance will be staying at 18%, 20%. If things go really well, then yes, there is a potential of margin expansion when the geopatical situation normalizes. But our obviously endeavor is there that we do we do -- we try to do better than what we have, what we have suggested. That's to Third is on the -- or yes, on the margin side. So I think on the kitchen -- the kitchen ores and the faucets, I think moving forward, is going to have the -- the best margins. Approximately it's going at about 60% gross margins and which is -- and with the new products, which we plan to have a our gross margin guidance between going to be around 60%. I think that's what we're going to do.

Lastly, how our MMA prices? Last question. .

MMA prices are on the rise. They are increased in the ring, which is they say at a short level, but they have stopped increasing. That's a second good thing. So the bad thing, it has increased. Second thing is the stop increasing. And third thing, good thing that we have been able to mostly have been able to pass on to our customers.

Currently, how much are they -- sorry, just a follow-up.

Yes. So I'm just saying the private price has increased by about 30% approximately 30%, 35%.

Sequentially --

the last quarter, it increased by around 25% to 30% in the last 2 months.

The next question comes from the line of Nisha Jain with Ethos Growth Ventures. .

So I just wanted to ask how should we think about the sustainability of the current margins across cycles what would be the separation between the product mix and operating leverage benefit versus the material tailwind metals like MMA, if that happens?

Yes. So I can answer I think the -- I think like I said, it's going to be like a volume-led growth. I mean the company, the new tie-ups that we have done all whether it's stainless steel or whether it's a part in, I think we are we have good operating margins or gross margins for both the product lines. Our company is also moving into a lot of technology disruption like we are introducing a lot of automation. So it will be a big operating leverage. So I think it's going to be -- there is going to be a mix of a product mix, high margin product mix and with outpatient operating leverage, which will drive the forward. And the third is that, one, we are doing a lot of innovation within our company. So for example, we have kind of have got a breakthrough in 2, 3 big technology advancement in word and in the stainless steel, which is going to significantly significantly in 1 of the cases, user manufacturing costs. And in 1 case, it is going to go to improve our sales price. So that is something we have been trying to achieve for a long, long time. And our team, I think, has done a great, great, great job in this. Basically, we're trying to do is that once you want to achieve scale, you need to try to touch upon the new landscape and horizons, which our competition is into and that means you need to try to match with that price. And secondly, you need to come out with not just pricing, but in Europe is -- and the red states, you need to come with a more better material, which our competition is making. So I think that's where we've been tri- we have got the breakthroughs in that, and we would we would be driving growth as 1 of our -- 1 of our growth drivers would be that.

Our next question comes from the line of Pragada with Omni Securities.

Sorry, sir, my line was disconnected. So sir, the next question I was about to ask is, is the serrated revenue going to remain in the same line, growing at like 5%, 6% every year. Is it going to be the same?

You're talking about sub growth? .

Yes, surface.

So right now, the U.K. market, as I said, is bottomed out, I think is going flat. U.S., we have seen in the last quarters are quite a significant improvement. -- what it is. The sales have grown by 10%. So if we've been constantly innovating this bringing launching new high-margin products over there. So I think this we are, like, for example, our next year AOP budget is about 10% increase. So I think we will be looking at about a 10% growth targeting 10%, we can land up about 7%, 8% on those yes.

Sir, our current appliance sale, appliance and post sales for the year was around 75,000 I just want to understand that our capacity is 50,000, but our sales is 75,000, how does it matter?

No, that is a segment where appliances, facet and others are added together. So appliances to appliances only appliances. There is another 3 of INR 50,000 or projects. So that includes everything.

Our next question comes from the line of Kush with Vivo Commercial.

So my question would be regarding the execute side there, how much would be the fixes are going to be increased in the following years apart from the CapEx that you had announced?

So we had a CapEx plan of around INR 70 to INR 75 crores for this piracy.

And for the following year, is there any plan of --

We have not decided we will review that in quarter 2, and then we'll decide for the next 10 years.

Ladies and gentlemen, due to the time constraint, that was the last question for today. I would like to hand the conference over to the management for closing remarks. Thank you, and over to your team.

Thank you, everyone. I hope we've been able to answer all your questions satisfactorily. However, if you need any further clarification or want to know more about the company, can lead Cott GI team, our investor relation advisers. Thank you.

Thank you, so master. Ladies and gentlemen, on behalf of Gondi Advisors, that concludes this conference. Thank you for joining us, and you may now disconnect your lines.